What to Look for in a Home Insurance Policy

Though purchasing home insurance is not required by law, it may be required by your mortgage lender and/or the neighborhood’s HOA. Not to mention, buying a policy helps provide valuable coverage to protect your financial interests if disaster strikes. Your home is likely your largest investment, so it’s worthwhile to get the right protection in place. But what should you look for in a home insurance policy?

Property

The ideal amount of property coverage is enough to rebuild your house from the ground up. A partial loss is much more likely than a total loss, but you don’t want to be caught unprepared if a fire burns down your home. This coverage should also cover detached garages, sheds, gazebos and other structures on your property.

Contents

In addition to protecting the structure of your house, you’ll also need coverage for your belongings. This includes furniture, artwork, kitchen appliances, clothing, collections and all of the other possessions that turn your house into a home. Take a home inventory (your agent can offer tips and advice on this process) to determine the overall value of your stuff, and then seek a matching amount of contents coverage for your policy.

Liability

As a homeowner, you also have a responsibility to visitors and neighbors. Any damages or injuries that can directly be tied back to you can cost you thousands, or even millions. Having liability coverage in place is key to protect you if one of these situations arises. Be sure to let your agent know if you have a pool and/or trampoline, as these increase your liability risks.